BOS Better Online Solutions recently reported a strong second quarter of 2026, with revenue rising sharply both sequentially and year-over-year while its order backlog remained at a record level.
Second-quarter revenue reached $14.9 million, up 29% from $11.5 million in the prior-year period and approximately 30% from the first quarter of 2026. Despite the significant sequential increase in shipments and revenue recognition, BOS ended the quarter with a backlog of $31 million, unchanged from the previous quarter.
Approximately $20 million of the backlog is scheduled for delivery by the end of 2026. Management noted that this amount, combined with first-half revenue, represents approximately 91% of BOS’s entire fiscal 2025 revenue, providing the company with substantial visibility into the remainder of the year.
Gross profit increased to $3.4 million from $2.6 million, while gross margin improved slightly to 23% from 22.8%. Operating income reached $1.1 million compared with $0.1 million a year earlier, although the prior-year quarter included a $0.7 million goodwill impairment charge. EBITDA increased to $1.3 million from $0.9 million.
Net income increased to $1.4 million, or $0.19 per diluted share, from $0.8 million, or $0.12 per diluted share.
For the first half of 2026, BOS generated $26.2 million of revenue, roughly in line with $26.6 million in the first half of 2025. First-half gross margin increased to 23.8% from 23.4%.
Growth during the first half was led by BOS’s RFID division, where revenue increased 17.5%. Supply Chain revenue declined 5.8%, although management views the softness as temporary based on current backlog trends.
BOS continues to expect full-year revenue to exceed $51 million and raised its 2026 net income guidance to more than $3.6 million. Management is also evaluating bolt-on acquisitions, with $2.9 million of proceeds from warrant and option exercises available to support potential transactions.
KEY QUOTE:
“Our backlog remained at a record $31 million as of the end of the second quarter of 2026.”
Eyal Cohen, CEO of BOS
